Turkish Treasury says offering attracts orderbook nearly 5 times actual issue size of dollar-denominated Turkish bond
The total size of the orderbook for dollar-denominated Turkish bonds the Treasury issued on Wednesday has been the highest of all the republic issuances in the international capital markets.
According to a statement from Turkey’s Treasury and Finance Ministry, international demand for the new Turkish bond offering was $15 billion, nearly five times the bonds’ actual issue size.
The ministry on Tuesday mandated Citi, Goldman Sachs, and JP Morgan for a dollar-denominated, dual-tranche bond due 2026 and 2031, the statement said.
The transaction was finalized with a nominal amount of $3.5 billion.
The proceeds of the issue will be transferred to the Treasury accounts on Jan. 26.
The five-year bond has a coupon rate of 4.75% and a yield to investors of 4.90% and the 10-year bond has a coupon rate of 5.875% and a yield to investors of 5.95%.
Some 35% of the bonds have been sold to investors in the UK, 33% in the US, 16% in other European countries,10% in Turkey, and 6% in other countries, it added.